The term ____ applies to the reduced direct labor requirement per unit of output due to the effects of learning,while the term ____ refers to the longer-term factors of production that systematically reduce production costs.
A) learning curve....experience curve
B) learning curve....infinity curve
C) experience curve....Boeing curve
D) experience curve....learning curve
E) None of these choices.

Question

Quizplus · Accepted Answer

The term "learning curve" specifically refers to the reduction in direct labor required per unit of output due to learning, while the term "experience curve" refers to the broader, longer-term reduction in production costs due to factors such as economies of scale and improvements in technology. Therefore, the best choice is A, which correctly pairs the terms "learning curve" and "experience curve" and distinguishes between their specific meanings.

The Term ____ Applies to the Reduced Direct Labor Requirement